Crow Wing Power – Managing Our Business
On Behalf of You >>>
As an electric cooperative, Crow Wing Power’s first priority is
always to provide our members with safe and reliable electric
service at a reasonable price. Local residents started this
cooperative in 1938 because the big investor-owned utilities
didn’t want to serve rural areas. Our members worked to form
and build this cooperative and our employees care about the
communities we serve.
By design, cooperatives are service companies. Our goal isn’t to
grow profits, but rather to keep the lights on and our local
businesses humming. When we operate well, we are able to award
capital credits to our members, so all of you share in the benefits
of our successful years.
There is one other difference from a typical business – our
members truly run the cooperative. You elect a board of directors
that includes other Crow Wing Power members, and there is a
very good chance that you personally know several members of
our board. Even though many of us have an iPhone, I doubt that
you personally know many members of the board of directors of
Apple, Inc.
While our primary goal is safe and reliable electric service, the
leaders of Crow Wing Power are on the lookout for other
business opportunities that may help our members.We will never
take unreasonable risks with member money, and our board
carefully watches all investments to make sure that the possible
reward justifies any risk we take. Crow Wing Power has invested
time and/or money in these different businesses in the past,
including Crow Wing Power Credit Union, People’s Security,
Summit EIS, Access Plus, Industrial Park, Hunt Technologies,
and Hunt Enterprises which have been quite successful both
financially and in improving services to members. In total, Crow
Wing Power has successfully invested in eight different businesses
in the past two decades that contributed to lowering member
electric rates or more member services.
Last month, the Star Tribune twice focused on one of Crow
Wing Power’s business enterprises, the Cooperative Mineral
Resources’ Emily manganese project. The Star Tribune could
have looked at all of our business enterprises, but they instead
chose a single project in a news article and column. We don’t
know why they focused on Crow Wing Power, but we believe we
have a good story to tell – if the full story is told.
Unfortunately, the story lacked many of the facts that are
necessary to understand how and why cooperatives make
investments in for-profit businesses. Hopefully, this column can
do a good job of setting the record straight by answering some of

What is the
Emily manganese project?
The Emily area has the richest known manganese deposit in
North America – between four and ten billion pounds of this
mineral that has many important uses. For example, manganese
is a critical product for use in steel production, battery storage,
electric vehicle batteries, and medical devices. Bloomberg
reports that the electric vehicle usage will rise worldwide from
1.1 million in 2017 to 30 million in 2030, just one example
of how demand for manganese is likely to grow. In order to
prepare our cooperative for the future, we decided to embrace the
renewable energy and electric vehicle boom that is upon us by
investing in this important Minnesota resource.

What has been happening with the mine?
There is no mine yet – but experts know the manganese is down
there. The first step in a mining project is to conduct the tests
(and related studies) needed to demonstrate that the minerals can
be recovered economically. These tests take a number of years,
and Cooperative Mineral Resources, a company owned by Crow
Wing Power, owns the rights to the mining on this land and has
paid for these tests.

Will Crow Wing Power and Hunt Enterprises eventually create
a mine for the manganese?
We will need partners – companies that are experts in this type of
mining to provide both financial and technical resources needed
to make this project successful. The purpose of the tests are to
demonstrate that the mine could be commercially successful –
and we are confident that the Emily manganese deposit will be
successful.

Why is this taking so long?
Mining is certainly a complicated business. After the bore hole
mining demonstration project failed in 2011, we knew it could
take a number of years to compile the technical information and
attract the partners needed to make the mine successful.
Fortunately, our successful sale of Hunt Technologies in 2006
gave us the funding we needed to invest in this project.

Continued on Pg. 2

A Word from Your CEO
Crow Wing Power – Managing Our Business On Behalf of You >>>
Continued from Pg. 1
Is Crow Wing Power investing my monthly rates in a mining
project?

How are Crow Wing Power leaders paid for their work on the
Emily manganese project?

No. The profitable sale of Hunt Technologies in 2006 allowed
Crow Wing Power to make three important investments: we
returned $12 million in checks directly to our members, we built
a new outpost in Swanburg to serve our northern service area
members more efficiently and invested in additional right-of-way
maintenance to improve electric service reliability, we also set
aside money for future business opportunities such as the Emily
manganese project.

In most cases, business enterprises owned by Crow Wing
Power are overseen by our leadership without additional
compensation. However, with the Emily project, I have received a
supplement to my salary that totaled $42,000 last year. In
addition, I and two now retired Crow Wing employees have been
eligible for a royalty payment, based on our ability to quickly
move into production. Since the mine is still in
development stage, no royalty payments have been made. In the
future we will change our compensation plan for the mining
project as we attract investors and my role changes.

Wait – there is no monthly electric rate money spent on the
mining project?
Other than the time spent on oversight by the board of
directors and other senior leaders of Crow Wing Power, every
dollar spent on the mining project comes from the sale of a
successful company previously owned by Crow Wing Power.

What is the benefit that will come to members?
Assuming that we can find the right financial and technical
partners, we hope to see an operating mine in the next few years.
However, we know that it could take a little longer than that, and
we are able to be patient and wait for the right time to move into
the market.
Members will benefit once the mine is fully operational and/or
we sell our rights to another company.

Will this mining project harm the environment?
Your Manganese deposit is sulfide free, meaning it’s extremely
environmentally friendly to mine. We live here. We love our lakes
and beauty and are so very pleased this deposit is unique, without
dangerous material in it. We’ve completed many carefully
engineered technical studies, and we believe strongly that
manganese mining can be done safely and without risk to the
environment.

Volunteers Dig in to Help Baxter’s
Loren Thompson Pollinator Park >>>
Planting of pollinator plants was recently completed at Loren
Thompson Park in Baxter. Volunteers helped with the planting and
the three-year project is nearly complete. The event had seven adults
and five children working together to plant 350 assorted plants from
Coneflowers to Goldenrod, Bee Balm, Blue Aster, four types of
milkweed and countless other species carefully designed to attract
and sustain butterflies and bees.
Three years ago, the City of Baxter was ready to build an educational
pollinator garden for area residents. Master Naturalist Ken Lueken
has provided some of the plants and advice over the years. The City
of Baxter has provided tools and labor and Crow Wing Power has
helped with paving, signage, volunteering and plants.
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Is there anything else that the Star Tribune didn’t get right?
We wish the Star Tribune writers would have spent more time
learning about the cooperative business model and our
investments in the Emily manganese project. For example, the
column overstated the salary paid to our directors by comparing
us with Connexus Energy. In fact, our board makes an average of
a little less than $16,000 a year for their service – and I hope you
agree they are worth every penny.

The Star Tribune questioned the transparency of Crow Wing
Power – is that a fair criticism?
We work hard to make sure our members understand our
business operations and finances. With our for-profit business
enterprises, we have information on our website and newsletter
articles. But we can probably do better, and we will. For starters,
if any member has a question about the Emily manganese
project, call me at 1-800-648-9401 or 829-2827 or email me at
info@cwpower.com
Thank you for paying attention to this long newsletter article –
I hope it was helpful in addressing your questions.
I’ll keep you informed,

Bruce L. Kraemer, CEO

This year Ken had other Master
Gardeners, Coralee Fox and Dorothy
Hans helped with Master Naturalist
Rick Hans digging in as well.
Crow Wing Power had a couple
of employee volunteers and
member Britany West brought
her home-schooled five
children, Connor, Parker,
Madison, Evander and baby
Alexander.

t he po wer o f hu man con ne cti ons • www.c wpo wer . co m

Apply For Community Award >>>
Crow Wing Power is soliciting applications from local businesses
or organizations for a statewide Touchstone Energy® Commitment
to Community award. Applicants should exemplify a strong
commitment to community. Winners of the award will be
notified in November and given $500 and a plaque.
Statewide, many Touchstone Energy Cooperatives, like Crow
Wing Power, will offer the same in their local communities. All
local winners are eligible for a larger statewide prize of $1,000, a
plaque and one-night hotel stay to be awarded at the Minnesota
Rural Electric Association annual meeting in February 2019.
ELIGIBILITY: Any business or organization that has made
their community a better place to live and work is eligible.
Organizations do not have to be a member of the cooperative,
but must have served a community need within the service
boundaries of Crow Wing Power.
APPLICATION: We’ll need a description of the project, program
or event and the positive impact it brought to the community in
2017 or 2018. For an application contact the cooperative or
download one off the Internet at www.cwpower.com,
News/Events.
DEADLINE: Applications need
to be sent to Crow Wing Power
by October 31, 2018.
QUESTIONS: Contact Char Kinzer
or Jolene Jensen, Crow Wing Power,
P.O. Box 507, Brainerd, MN 56401;
218-829-2827 or kinzer@cwpower.com
or jensen@cwpower.com.

Operation Round Up

>>>

In July the Crow Wing Power Community Trust Board met and
distributed Operation Round Up grants. The next trust board meeting is
set for October 25. Deadline for applications is October 10. Grants given
to date total $3,461,425.

Notice of Rights for Households of Military Service Personnel >>>
An electric cooperative cannot disconnect a residential
customer for nonpayment of electric bills if a member of the
household has been issued orders into active duty, for
deployment or for a permanent change in duty station during
the period of active duty, deployment or for a permanent
change in duty station, if such a residential customer meets
income criteria specified by law. To receive this protection from
disconnection, the residential customer must request and reach
agreement with the cooperative on a payment plan. You may
contact the cooperative to receive the application form.

Verification of income is required unless the customer is
automatically eligible for protection against disconnection as
a recipient of any form of public assistance including energy
assistance that uses income eligibility in an amount at or
below the income eligibility.
The customer has the right to appeal when the utility and
residential customer are unable to agree on the establishment,
reasonableness or modification of a payment schedule, or
timeliness of payments under a payment schedule.
If denied, an appeal must be made within seven working days
after the utility has deposited first class mail notice. Service
cannot be disconnected during an appeal.
For more information or to apply for shut-off protection,
call 1-800-648-9401 or 218-829-2827.

Paper Storm will be providing secure document destruction at
our office on Tuesday, October 16th from 11:00 a.m. to
2:00 p.m. Take advantage of this free service during
International Credit Union Week. If you can’t stop by on
Tuesday, a secure locked tub will be in the lobby all week.
Drop off your financial records and rest assured that they will
be destroyed under the most secure
guidelines and procedures. The
shredded material is recycled whenever
possible to help protect our local
environment.

Do you want to refinance your mortgage to a lower rate and
pay little to no closing costs? The Credit Union has great offers
on home equity loans that will save you hundreds of dollars.

International Credit Union Week is October 15-19

Loans are Designed to Match Your Lifestyle & Budget

Open a new savings, checking, certificate or loan account
during International Credit Union Week and your name will be
entered into a drawing for a $50 Visa gift card. In addition, the
Credit Union will make a $10.00
donation for each new
service and the money
will help local kids
through Gillette
Children’s Specialty
Healthcare.

The Credit Union offers rates as low as 2.49%* for the first year
on consumer loans and 2.74%* for the remainder of the term.
Maybe you are looking to upgrade your vehicle or boat during
the season clearance sales or hit the lakes this winter with a new
snowmobile or fish house. It’s quick and easy to get loans from
the credit union.

WIN $50!

• No closing costs on $100,000 or less;
• In-house loans are offered up to $300,000 with
competitive closing costs;
• Loans will balloon in 3 to 5 years (Balloon term based on
the amount financed);
• Up to 80%** of the equity for residences, cabins or land
in the state of Minnesota.

Forms, applications, and more information are available at
www.cwpcu.org or call the Credit Union at 218-829-2827.
If you prefer face-to-face processing, stop in to visit with any
Member Service Representative during our business hours of
7:30-5:00pm, Monday thru Friday.
*Rates based on credit score, so your rate may be higher. Current CWPCU loans
are not eligible for these special rates. NMLS #408088
** Not all loans are eligible for the 80% LTV and will be subject to approval.

Providing Peace of Mind, Whether Home or Away >>>
Helping people secure their homes and business has been People’s Security Company’s focus for 29 years. During this time our customers
have learned the value of having a local, trustworthy company install, monitor and service their systems.
Take advantage of technological advances available today for your security system. Using a web-enable device you can now:
• See video of your home, cabin or business right from your device;
• Remotely arm and monitor your security system;
• Remotely lock your doors;
• Control the temperature of your home, cabin or business;
• Create automatic light schedules;
• And more!
One of the biggest advantages of having a security system
along with freeze-up protection is that you can avoid
unwanted, costly and time-consuming expenses when your
home is left unattended.
Contact us for your free in-home consultation to see what
solutions we can provide to insure that you are not faced
with surprises at your home, cabin or business.
800-735-1440. www.PeoplesSecurity.com
6

Yes, I’d like to join the Co-op Cookin’ Club and receive a new recipe card
each month in the mail. I understand there is no charge.
Name:______________________________________________________
Address:_____________________________________________________

Cold Weather Rule Begins October 15 >>>
If you don’t keep up with payment arrangements and meet other conditions you could
get disconnected for non-payment, even in the winter months. Minnesota law includes
electric cooperatives in a basic utility ruling that provides some protection for certain
members from being disconnected as long as members have made satisfactory payment
arrangements with the cooperative.
In order to be protected from electric service disconnection for non-payments, residential
members can apply for Minnesota Cold Weather Rule protection. During the period of
time from October 15 to April 15, you can receive protection only if certain conditions
are met and the disconnection would affect your main heating source.
1. The household income of the member is at or below 50% of the state median
household income. We may verify income on forms we provide or obtain verification of
income from the local energy assistance provider. That member is deemed to meet that
requirement if they are receiving public assistance consistent with income guidelines.
2. A member must enter into and make reasonable timely payments under a payment
agreement both the member and Crow Wing Power agree to.

Cold Weather Rule

>

In order to avoid disconnection between
October 15 and April 15:
1. You must declare an inability to pay on
forms provided by Crow Wing Power.
Inability to pay forms can be found
at cwpower.com under membership –
billing and payment options.
2. Your household income must be less
than 185% of the federal poverty level,
as documented by you to the co-op.
3.Your account needs to be current for
the billing period prior to October 15,
or you need to enter into a payment
schedule and be reasonably current
with your payments.

Note, your service will be subject to disconnection if you do not make the agreed upon
payments. If you get a disconnect notice – DO NOT IGNORE IT – and call Crow
Wing Power immediately at 218-829-2827 or 1-800-648-9401.
Cr o w W ing Po we r • 8 2 9-2 8 2 7 o r 1-8 0 0- 64 8 -94 01

5

Win $25 off your electric bill >>>
Complete the word find puzzle below, clip and send entire coupon back to us by November 20,
2018. We’ve sized it to fit in your billing payment, so you can save a stamp. If you’d rather, you
can send it separately to Crow Wing Power, PO Box 507, Brainerd, MN 56401. Attn: Puzzle or
scan and email to info@cwpower.com. The winning entry will be drawn on November 20.
Our winner for the last puzzle: Gloria Stone, Cushing
(ISSN 1068-1949)
USPS 456-180
Published bimonthly by
Crow Wing Power,
17330 State Hwy. 371
Brainerd, MN 56401.
218-829-2827
800-648-9401
www.cwpower.com